Paytm to invest ₹455 crore in units, Shuts RMG Operations after new law

To boost its revenue, Paytm’s board has approved an investment of ₹300 Cr in its investment tech arm, Paytm Money.

According to an exchange filing, Paytm Money will issue 30 Cr new equity shares at a face value of ₹10 each to its parent company.

Paytm Money offers services like stock broking and mutual fund distribution. Paytm remains optimistic about its future, with CFO Madhur Deora earlier highlighting strong growth in equity broking.

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This year, SEBI approved Paytm Money as a registered research analyst, a move analysts say could help it expand into wealth management and create a new fee-based income stream.

However, Paytm Money’s turnover dropped by around 10% in FY25, falling to ₹172.9 Cr from ₹194.1 Cr in FY24.

At Paytm Money, leadership has changed in recent months. Rakesh Singh, who served as MD & CEO for over a year, moved to a new role within Paytm and was replaced by Sandiip Bharadwaj, former COO and digital head at HDFC Securities.

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The board also approved an investment of ₹155 Cr in Paytm Services Pvt Ltd (PSPL), which provides manpower and related services. PSPL’s turnover grew 64% in FY25 to ₹252.4 Cr, up from ₹154.4 Cr the previous year. 

Earlier known as Balance Technology (acquired by Paytm in 2018), PSPL was headed by Varun Sridhar, who recently resigned after five years at Paytm. Sridhar said he now plans to launch a wealthtech venture.

In another move, Paytm transferred a 55% stake in its gaming arm, First Games, from Paytm Cloud Technologies to PSPL for ₹140 Cr as part of restructuring. However, First Games has shut down its real money gaming business after the government ban. The subsidiary, a joint venture with AGTech Holdings, carried no investment value by Q1 FY26, though Paytm still has a shareholder loan exposure of about ₹200 Cr.

Additionally, Paytm’s board approved the transfer of 100% ownership of Foster Payment Networks Pvt Ltd to the parent entity OCL (One97 Communications) for up to ₹61 Cr.

These developments come shortly after Paytm reported a strong turnaround, posting a net profit of ₹122.5 Cr in Q1 FY26, compared to a loss of ₹840.1 Cr in the same quarter last year.

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